The Hindu Business Line : Market not enthused; Sensex sheds 74

STOCK prices were extremely range bound on Thursday, primarily due to the continuing uncertainty over the composition of the new Union Government and the common minimum programme.

The Sensex today shed 74 points to close at 4932, shedding nearly 1.5 per cent, with PSU and bank stocks leading the decline.

HDFC, BHEL, and Reliance Energy were also top losers today. Sensex heavyweights Reliance and Infosys also ended the day in the negative.

The Nifty lost 1.53 per cent to close at 1,544, down 24 points from Wednesday's close. Interestingly, CNX Midcap 200, the mid-cap companies' index on NSE, gained 0.65 per cent today. Volumes were really low at both exchanges - only 27 crore shares traded hands at the National Stock Exchange today.

While markets moved within close ranges all morning, the preliminary announcement by the Prime Minister designate brought with it some jitters leading the indices to the negative territory.

Dr Singh confirmed today that profit making PSUs and banks would not be privatised.

Brokers predict that volumes would continue to be low and markets would operate on extreme volatility for the next 5-7 trading days.

"There is no excitement in the markets now. People seem to be going through the motions. No one wants to take a position till there is absolute clarity on where this government plans to take the reforms process and thereby the markets," said a broker.

In the meantime, BSE confirmed that the pay-in and pay-out for Monday's trade have been successfully completed.

This indicates that despite the historic market crash, there have not been any defaults on payments in the exchange.

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Market not enthused; Sensex sheds 74